Outstanding Market in September 2020

By Robert Nardi

In the September 2020 Market Report, released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), performance in several vital areas was at a 20-year high compared to activity reported during any other September on record. Closed sales increased 52.9 percent to 1,096 closed sales in September 2020 from 717 closed sales in September 2019. Pending sales activity also raised a whopping 83.4 percent to 1,509 pending sales in September 2020 from 823 in September 2019. It is ironic, because generally September is the slowest-selling month.   The number of showings increased 80 percent to 35,465 compared to 18,745 in September 2019. Lastly, closed sales are up 7.5 percent since January compared to the same time frame in 2019.

 

For September, median closed prices increased 18.2 percent to $384,000 from $325,000 in September 2019 can be attributed to the uptick of multiple offer occurrences in September.

 

Inventory continues to decrease rapidly; in September, it fell 32.2 percent to 3,980 properties from 5,873 properties in September 2019. One sector, the Multi-million properties are being purchased briskly with many buyers making an offer sight-unseen. There are currently less than 500 properties on the market for over $2 million. Not surprisingly, closed sales of homes above $2 million have increased by 30.7 percent in the 12-months ending September 2020.   NABOR® sales statistics are presented in chart format ( CLICK HERE ) for those of you who would like to see all the statistics.

 

What are my thoughts?

 

People are flocking from the North to Southwest Florida because their employers are telling them that they will be working remotely indefinitely. Why stay in the snow & cold and pay high taxes when they could come to Florida's tax-friendly state for ideal weather, white sandy beaches, and sunshine? Also, they have a fear of staying inside all the time. With Florida and its warm weather, you can dine outdoors three meals a day, which gives them less fear of being infected by COVID in a closed space.

As far as what they are purchasing, it is single-family homes vs. condominiums. With condominiums, they share common space, elevators, pools, etc. There has been a 19.6 percent increase in homes' closed sales with a minimum of four bedrooms over last year. This indicator shows a definitive shift in buying behavior because of the pandemic. The demand is high for single-family homes with additional space to accommodate a home office and a virtual schoolroom. With their own single-family home, it is their private oasis to work, educate and play!

 

Seasonal Rentals

 

Seasonal rentals are flying off the shelves. We have a waiting list for some of our homes/condominiums with golf memberships and single-family home properties. Many people are requesting rentals with three contiguous months, January through March 2021, which is far different from the past. Most were 1- or 2-month rentals in season and, on occasion seeing a 3-month rental.  Believe it or not, we see even increases in 4-, 5- or 6- month rentals, and even in the past few months, people who are in current rentals here are extending their stay 1-, 2- or 3- months more. 

 

If you still want to get out of the cold, please contact my Rental Operations Manager, Corine Bordges, at 239-206-6457. She has access to our rental inventory availability. If we do not have what you are looking for, we could also have you work with our professional rental agents to find your temporary piece of paradise!

 

If you should have any questions on sales or rentals, please feel free to contact me directly at 239-293-3592 or e-mail me at  Robert@NardiRealty.com  or feel free to perform your searches at  www.BuyNaples.net .

 

Happy Thanksgiving! 

 

 

I wish you a wonderful holiday with your friends and family. Hopefully, I will see you soon in sunny Southwest, Florida.  Stay safe!